Share this:

Anyone who thought today’s extender budget bill vote would go smoothly probably hasn’t been at the Capitol for very long. The latest potential snag centers not just on the $1.60-a-pack cigarette tax increase (the Capitol is crawling with tobacco lobbyists today) that Gov. Paterson has submitted, but language in his extender bill package which critics say gives the governor’s office carte blanche to negotiate one-on-one with the tribes over tobacco taxation, absent input from the Legislature.

As evidence, one source presented this draft bill, below, that Paterson’s office appears to have developed with the Oneidas of Central New York to resolve a long standing lawsuit with the tribe. Tucked into page 7 is a clause that exempts from the new taxes cigarettes that the Indians manufacture themselves.

In addition to the big tobacco companies crying foul, they are saying that allowing that kind of bargaining or negotiation by the governor’s office without lawmakers’ say-so represents a new expansion of gubernatorial powers. Some are suggesting the matter would end up in court, maintaining that the state Constitution makes no allowances for such agreements.

The bottom line for today’s budget extender vote, though, centers on whether this deal creates enough concern among some Democratic senators that they may hold out on providing the 32 votes needed to pass the budget. Republicans have all said they’ll cast 30 “no” votes in unison against any budget plans that contain a tax increase.

Tobacco lobbyists have been meeting with some Senate Democrats, pointing out their concerns. It’s not clear who might cast a “no” vote, but there has been no shortage of lawmakers including Brooklyn’s Carl Kruger who have been out front on the push to tax Indian cigarettes.

(Update): I’m told that products manufactured by Indians are by federal law exempt from such taxes although it’s unclear if that applies to cigarettes.

About Capitol Confidential

Capitol Confidential gathers the best coverage of New York politics and puts it all together. Each section - Capitol, The State Worker, New York on the Potomac, and Voices - represents a unique facet of the political scene. The Capitol section features coverage from the Times Union Capitol bureau. The State Worker is dedicated to state worker issues. New York on the Potomac offers news of interest to New Yorkers from Washington. And Voices features the best of everything else, pointing you to columnists and bloggers from across the Web.